NCLT Mumbai Allows ND Studios RPs' Plea To Exclude 116 Days From CIRP Period Due To Criminal Proceedings

The National Company Law Tribunal (NCLT) Mumbai, with Justice Virendra Singh Bisht (Retd.) and Mr. Prabhat Kumar, allowed ND Studio Resolution Professional's plea for the exclusion of 116 days from the Corporate Insolvency Resolution Process (CIRP) due to ongoing criminal proceedings. ND's Art World Private Limited was admitted to CIRP by NCLT Mumbai for a default on a debt of Rs 252.48 crore filed by Edelweiss Asset Reconstruction Company Ltd. \r

The tribunal noted a police case for abetment of suicide against the Resolution Professional after one of the directors, Nitin Desai, died in the studio. Considering the circumstances, NCLT had previously allowed the Interim Resolution Professional to continue the CIRP only after normalcy was restored. The RP requested the exclusion of 116 days from the CIRP period due to the FIR lodged against him, preventing him from taking custody of the studio asset. \r

NCLT granted the exclusion, extending the CIRP deadline to 14.08.2024, emphasizing its importance for the Corporate Debtor's successful resolution and revival. It directed the RP to diligently work towards completing the CIRP within the extended timeframe and submit quarterly progress reports.